Correlation Between Ultimus Managers and GPOW
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and GPOW at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ultimus Managers and GPOW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimus Managers Trust and GPOW, you can compare the effects of market volatilities on Ultimus Managers and GPOW and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ultimus Managers with a short position of GPOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and GPOW.
Diversification Opportunities for Ultimus Managers and GPOW
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ultimus and GPOW is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and GPOW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPOW and Ultimus Managers is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ultimus Managers Trust are associated (or correlated) with GPOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPOW has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and GPOW go up and down completely randomly.
Pair Corralation between Ultimus Managers and GPOW
Given the investment horizon of 90 days Ultimus Managers is expected to generate 1.36 times less return on investment than GPOW. But when comparing it to its historical volatility, Ultimus Managers Trust is 1.0 times less risky than GPOW. It trades about 0.47 of its potential returns per unit of risk. GPOW is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 5,061 in GPOW on September 2, 2024 and sell it today you would earn a total of 636.00 from holding GPOW or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimus Managers Trust vs. GPOW
Performance |
| Timeline |
| Ultimus Managers Trust |
| GPOW |
Ultimus Managers and GPOW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and GPOW
The main advantage of trading using opposite Ultimus Managers and GPOW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, GPOW can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GPOW will offset losses from the drop in GPOW's long position.| Ultimus Managers vs. First Trust Exchange Traded | Ultimus Managers vs. Horizon Kinetics Medical | Ultimus Managers vs. Harbor Health Care | Ultimus Managers vs. American Beacon Select |
| GPOW vs. First Trust Exchange Traded | GPOW vs. Ultimus Managers Trust | GPOW vs. Horizon Kinetics Medical | GPOW vs. Harbor Health Care |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |